Survey Sheds Light on UK’s Lack of Financial Planning
A recent survey by Opinium, commissioned by St James’s Place wealth management, has unveiled startling facts about the financial planning habits of the UK population. According to the survey findings, a whopping 59% of individuals do not have a financial plan for their future. This percentage denotes a significant portion of the populace who are either unprepared or unconcerned about their financial future.
Younger Generations Show More Financial Foresight
Interestingly, the survey revealed that the younger demographic, specifically those under 34, demonstrated greater financial prudence. 61% of this group reported having a financial plan, which could encompass strategies like augmenting savings, bolstering pension funds, or planning to purchase a property. In sharp contrast, only 27% of individuals over the age of 55 reported having a future financial plan.
Financial Planning Leads to Wealth Accumulation
The survey further underscored the correlation between financial planning and wealth accumulation. Individuals with a financial plan have predominantly seen their wealth burgeon over the past decade, with 65% acknowledging an increase in wealth. This figure stands in stark contrast to the 38% of those without a plan who reported a similar increase.
The Impact of Financial Advice and Regular Reviews
A significant 67% of those with a financial plan admitted to seeking financial advice, implying the crucial role of professional guidance in effective financial planning. The survey also brought to light the fact that a substantial number of the population do not regularly review their financial outgoings or scour for better rates on savings and household bills. However, those who did were rewarded—over half of the individuals who searched for better savings rates and 50% who looked for improved deals on household bills reported a positive impact on their financial health.
The survey, which encompasses the responses of 6,000 individuals across the UK, was conducted in October. Alexandra Loydon from St James’s Place has underscored the urgency of taking the reins of one’s finances, especially in the face of challenging economic conditions projected for 2024.
